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A monthly budget sheet helps ensure that the individual has enough money to pay necessary bills and expenses each month. It also provides a visual of which items an individual can spend less money on, and which items he can spend more on. According to the Federal Trade Commission, it is important to know how much money is leftover each month to begin saving money.

To start making a monthly budget sheet, a person needs to compile all of his pay stubs, bills and receipts dating back one to two months. First, he should write down his total monthly income from his pay stubs. Next, he needs to list all of his necessary expenses, including rent or mortgage, car payments, credit card bills, utilities, groceries and student loans. These numbers add together to determine the necessary monthly expenses. The person should subtract this amount from his monthly income. The remaining amount is what he has leftover each month to spend on nonessential items or to add to a savings account.